LIC Housing Finance shares slip post-Q2 results; here's what brokerages recommend
Published on 30/10/2025 12:50 PM
LIC Housing Finance Share Price: LIC Housing Finance Ltd's shares declined nearly 4 per cent on Thursday's trading session after the company released its financial results for the quarter ended September 2025.
As of 12:30 am, the stock of the housing finance company was trading in red at Rs 568, down by 4.28 per cent from the previous close. It has also declined 5.45 per cent so far this year (YTD).
LIC Housing Finance (LIC HFL) reported strong quarterly results. The company's net interest income (NII) rose 3 per cent, while profit after tax (PAT) increased 2 per cent.
The company also recorded its gross non-performing assets (GNPA) declining to 2.51 per cent from 2.62 per cent quarter-on-quarter (QoQ), and net NPAs falling to 1.19 per cent from 1.3 per cent.
Additionally, the company's individual home loans grew 3 per cent, supporting a steady expansion in the core lending business.
JP Morgan has maintained an 'overweight' rating on LIC Housing Finance with a target price of Rs 690, reflecting a positive outlook on the stock.
Jefferies has maintained a 'hold' rating on LIC Housing Finance with a target price of Rs 635. In Q2, PAT came in at Rs 13.5 billion, up 2 per cent YoY, in line with expectations, as a miss in NII was offset by lower operating expenses.
The company’s AUM grew 6 per cent YoY (1 per cent QoQ), while disbursements fell 1 per cent YoY, with home loans growing 3 per cent. Home loan rundown rates increased to an annualised 20 per cent, and NIM fell 5 bps QoQ to 2.6 per cent due to lower yields.
Spreads (EOP) at the end of the period declined 12 bps QoQ compared to 20 bps in the previous quarter, as exit yields dropped faster than the cost of funds. On the asset quality front, GNPA improved 11 bps QoQ, but credit costs rose to 22 bps from the estimated 14 bps, driven by an increase in Stage 3 ECL coverage by 230 bps QoQ.
Currently working as a trainee Sub-Editor at Zee Business, Shristi Rani is passionate about storytelling and delivering content that engages diverse audiences across digita